The latest results revealed the company's phone business revenue had declined by 70 per cent, with no new Windows Mobile smartphone yet in sight.
The cloud-based productivity suite now has 23.1 million subscribers, no less - not bad considering that at the end of 2014, just a year and a half ago, the number of Office 365 users was 9.2 million.
"This past year was a pivotal one in both our transformation and in our partnership with customers who are also driving their own digital transformation", chief executive officer Satya Nadella said during a conference call.
SAP chief executive officer Bill McDermott said the firm was not expecting any impact on its business from Britain's decision to leave the European Union, adding that he "confidently" confirmed the group's full-year targets. Cloud-as-a-service revenue rose 50% with an annual run rate of $6.7 billion, up from $5.4 billion last quarter. Revenue slid 7.1% to $20.61 billion and was $22.64 billion on an adjusted basis. Microsoft explains that this information is specifically provided for investors in order to better understand the performance of the company during the said period.
After last week's concession that it would miss its projected Windows 10 installation promise for mid-2018, Microsoft execs were quick to let everyone know that the company is still on track on the cloud side of its business.
"Microsoft Stream builds upon the learnings and success of Office 365 Video, and over time the two experiences will converge, making Stream the de facto video experience in Office 365", said James Phillips, VP of Business Intelligence, in a blog post announcing the preview earlier this week.
For the fourth quarter, sales in that segment fell to $8.9 billion, a decline of 3.7% year over year (2% in constant currency), even as revenue from sales of Windows to computer makers rose 11%. On the fourth quarter alone, the Group generated a net profit of 3.1 billion dollars.
The enterprise mobility (EMS) business, which saw customers double year over year, "really shows the power of what Azure can do", according to Suh.
Microsoft's cloud revenue, which includes the Azure cloud platform and server software, grew 7 per cent to $6.7 billion. Its overall device revenue is down 35 percent, largely because phone revenue was down 71 percent, .
Nadella recently oversaw Microsoft's largest acquisition with the June purchase of LinkedIn for $26.2 billion.